Back in the 1990s, the Customer is King became a popular notion, fueling the evolution that propelled businesses to treat their clients with more care and launched technology solutions that enhanced how a company did business with their customers.
By 2000, businesses already knew clients were king but were now focusing as well on their employees. A business’ success was riding on their talent, and the “war for talent” was born. In turn, HR software companies were automating business processes related to recruiting, training, onboarding and goal setting, and this had an impact on employee engagement and productivity, which translated into top and bottom line growth.
Now, Cash is King. The ever-accelerating pace of business, combined with the global financial crisis of 2008-2009, the notion that cash is king took on new meaning. The companies that were able to weather the financial crisis were ones that knew how to best leverage, protect, grow, invest and mitigate risk in relation to their cash and liquidity.
Enterprise leadership is facing the growing need to break into new markets with new product lines to stay competitive, mitigate financial and operational risk, ensure compliance and reduce the potential of financial fraud. They need to hire the top talent and have clear means to fund strategic workforce planning.
In order to achieve these goals for their organizations, financial leaders have a new mandate: have clear visibility on their cash position now and in the future, and understand how to best leverage it for strategic initiatives to ensure they are making the right investments and returning value to their shareholders and customers.
Corporates that want to not only survive but have healthy growth over time will need agility to adapt to changing market dynamics. However, many CFOs and finance leaders do not have an accurate view on their cash position, and therefore no means to leverage cash to drive growth. Without that visibility, and the capabilities to ensure controls are in place to protect the business, organizations will be at risk.
Now, more than ever, cash has become king. We’ll be talking more about this as the year progresses, and we look forward to hearing some of your stories about why cash is king at your organization. Also, if you stop by our booth at a trade show, you could pick yourself up some pretty cool Cash is King giveaways!